Market Size of Alternating Current (AC) Electric Drives Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 4.40 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Alternating Current (AC) Electric Drives Market Analysis
The global alternating current (AC) electric drives market is expected to register a CAGR of 4.4% over the forecast period (2022-2027). AC drives are used in various industries, including power generation, oil and gas, and food and beverage. They are used in manufacturing processes to regulate and control rotating equipment like fans, compressors, conveyors, machine tools & spindles, and pumps and to increase the industry's energy efficiency.
- Due to the rising domestic consumption rate, the growing gas industry and improving manufacturing outlook are anticipated to augment the demand for AC electric drives. For instance, according to IEA, in China, the increasing heating demand, combined with a strong economic recovery, pushed y-o-y gas demand growth to 23% in January 2021.
- Manufacturers in the food industry are increasingly adopting automation to meet the guidelines and regulations set by the industry associations to maintain the quality of products offered. For instance, Food & Drug Administration's Food Safety Modernization Act (FSMA) introduced regulations that necessitate giant food manufacturers to meet preventive controls and Current Good Manufacturing Practice (CGMPS) requirements.
- The stringent government regulations regarding environmental concerns to cut down energy usage and carbon emission regulate the demand for low-power AC drive as it helps achieve energy efficiency and reduce operating costs by monitoring energy usage.
- Moreover, urbanization and industrialization have raised the demand for automated and motor-driven equipment that needs AC drives. However, the initial setup cost, maintenance, and presence of alternative options to Electric drives are the factors hindering the market's growth.
- The Covid-19 pandemic shutdown of factories has impacted manufacturing facilities and decreased the demand for electric drives across different industry verticals. The pandemic has also highlighted the need for factory automation to replace labor to deal with a skilled labor shortage and avoid workflow disruption due to the situation's unprecedented nature.
Alternating Current (AC) Electric Drives Industry Segmentation
An AC electric drive is a device used to control the speed of an electrical motor to enhance process control, reduce energy utilization and generate energy efficiently. The Alternating Current (AC) Electric Drives Market is segmented By Voltage (Low, Medium), By End-user Industry (Oil & Gas, Chemical & Petrochemical, Food & Beverage, Water & Wastewater, Power Generation, Metal & Mining, Pulp & Paper, HVAC, Discrete Industries) and Geography.
Alternating Current (AC) Electric Drives Market Size Summary
The global alternating current (AC) electric drives market is poised for steady growth, driven by their critical role in enhancing energy efficiency across various industries such as power generation, oil and gas, and food and beverage. These drives are integral in regulating and controlling equipment like fans, compressors, and pumps, thereby optimizing manufacturing processes. The increasing domestic consumption, coupled with a burgeoning gas industry and a positive manufacturing outlook, is expected to bolster the demand for AC electric drives. Additionally, stringent environmental regulations are pushing industries towards adopting low-power AC drives to reduce energy consumption and carbon emissions. However, challenges such as high initial setup costs and maintenance, along with the availability of alternative drive options, pose hurdles to market expansion.
The AC electric drives market is characterized by robust applications in the discrete manufacturing sector, which includes industries like aerospace, defense, and electronics. The United States, with its significant investments in aerospace and defense R&D, is a key player in this market, driving demand through increased manufacturing activities. The electronics sector, facing rising energy consumption due to higher production volumes, is also shifting towards automation and energy-efficient solutions, further propelling the adoption of AC drives. Regional advancements in industrial automation and the Internet of Things (IoT) are enhancing operational efficiencies, with countries like China leading in manufacturing transformations. The HVAC sector's demand for energy-efficient systems, driven by infrastructure projects, also contributes to market growth. The market remains highly competitive, with major players like Danfoss, ABB, and Siemens AG continuously innovating and expanding their product offerings to meet the growing global demand.
Alternating Current (AC) Electric Drives Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Industry Attractiveness - Porters Five Forces Analysis
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1.2.1 Bargaining Power of Suppliers
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1.2.2 Bargaining Power of Buyers/Consumers
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1.2.3 Threat of New Entrants
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1.2.4 Threat of Substitutes
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1.2.5 Intensity of Competitive Rivalry
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1.3 Industry Value Chain Analysis
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1.4 Assessment of Impact of COVID-19 on the Market
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Alternating Current (AC) Electric Drives Market Size FAQs
What is the current Alternating Current (AC) Electric Drives Market size?
The Alternating Current (AC) Electric Drives Market is projected to register a CAGR of 4.40% during the forecast period (2024-2029)
Who are the key players in Alternating Current (AC) Electric Drives Market?
ABB, Danfoss, Rockwell Automation Inc., Schneider Electric SE and Siemens AG are the major companies operating in the Alternating Current (AC) Electric Drives Market.
